Question

Health Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola. The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to Health's two departments for the month of January:

Cases of cola in WIP, January 1: Mixing = 10,000; Bottling = 3,000
Cases of cola completed/transferred out during January: Mixing = 77,000; Bottling = ?
Cases of cola in WIP, January 31: Mixing = 4,000; Bottling = 8,000

How many cases of cola were completed and transferred to Finished Goods Inventory during January
66,000
71,000
72,000
74,000
must show work

Answer 1

72,000 cases of cola

Step-by-step explanation:

the formula for calculating units completed = units in beginning work in process (bottling) + units transferred in (mixing) - units in ending work inventory (bottling)

units completed = 3,000 (bottling) + 77,000 (mixing) - 8,000 (bottling) = 72,000